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Sen. Elizabeth Warren Calls for SEC Investigation into Trump’s Market Manipulation
In a recent interview, Massachusetts Senator Elizabeth Warren articulated her position regarding the necessity of an investigation by the Securities and Exchange Commission (SEC) into President Donald Trump over allegations of market manipulation and insider trading, emphasizing that such a probe is “entirely appropriate.”
Warren stated during her appearance on CNN’s “State of the Union” that the purpose of investigations is to ensure transparency and accountability. “It’s entirely appropriate to have an investigation to make sure that Donald Trump, Donald Trump’s family, and Donald Trump’s inner circle didn’t get advance information and trade on that information,” she explained.
Warren, alongside a group of Senate Democrats including Oregon’s Ron Wyden and New York’s Chuck Schumer, sent a letter to SEC Chair Paul Atkins urging an inquiry into potential market manipulation linked to Trump’s recent tariff announcements. These statements, which led to significant fluctuations in the stock market, raised concerns about whether insiders might have profited from prior knowledge of policy changes.
“We urge the SEC to investigate whether the tariff announcements, which caused the market crash and subsequent partial recovery, enriched administration insiders and friends at the expense of the American public,” the senators expressed in their communication. They specifically questioned if any insiders, including Trump’s family members, had advance knowledge that allowed them to gain unfair advantage in stock trading.
White House Responds to Democrats’ Allegations
The White House reacted swiftly to the calls for investigation, characterizing them as “partisan games.” White House spokesman Kush Desai defended Trump’s actions, claiming it is the President’s duty to stabilize the markets and ensure economic security amidst continuous media alarmism. “Democrats railed against China’s cheating for decades, and now they’re playing partisan games instead of celebrating President Trump’s decisive action,” Desai added.
On the same day, Warren was pressed on whether she had concrete evidence of insider trading. Her response highlighted observations made by others regarding market activities prior to Trump’s announcement, suggesting patterns that warranted closer scrutiny: “There are people who have looked at what happened to purchases and to calls just before he made that announcement that caused the stock market to skyrocket,” she noted.
This latest episode has reignited discussions surrounding the ethics of stock trading among members of Congress. Warren reiterated her long-standing advocacy for rules that would prohibit lawmakers from trading individual stocks, emphasizing the principle of preventing insider trading. “No senator, no representative should be able to trade in any individual stocks,” she asserted.
Calls for Broader Investigation Amidst Ongoing Trade Tensions
In addition to Warren, other Democratic lawmakers, including Senators Adam Schiff and Ruben Gallego, also reached out to White House officials seeking further investigation into potential insider trading related to tariff policies.
Additionally, President Trump took to social media shortly before pausing the reciprocal tariffs, encouraging optimism about the market’s future. He reiterated that it was a favorable time for investment, despite previously asserting that he would not suspend tariffs. The pause only affected certain customized tariffs, while China was subjected to heightened tariffs following its retaliatory measures.
Warren cautioned that while tariffs can serve as a strategic tool in trade relations, Trump’s approach has led to disorder in the market. She articulated that the current landscape reflects “chaos and corruption,” with broad tariffs imposed indiscriminately across goods and services. “That’s the 10% tariff. Of course, it was much higher earlier in the week, and now in this trade war with China that basically tries to shut down all trade,” she remarked.
The unfolding events are likely to dominate discussions in the coming weeks, raising critical questions about transparency, accountability, and the ethical responsibilities of public officials in an increasingly complex economic landscape.
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